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On August 9, 2017, Royal Mail issued a 20-year bond with an annual coupon rate of 4%. The bond is currently trading at a price

On August 9, 2017, Royal Mail issued a 20-year bond with an annual coupon rate of 4%. The bond is currently trading at a price of 110. What is the cost of debt today (August 9, 2022) using the Yield-to-Maturity approach?

2.21%

3.15%

3.31%

2.37%

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